Quick Answer: You do not need 20% down to buy a house in Utah. The minimum down payment ranges from 0% (VA and USDA loans) to 3% (conventional) to 3.5% (FHA). Many Utah buyers put down less than 5%, and Utah has some of the most generous down payment assistance programs in the country — Utah County offers up to $40,000 and Davis County up to $50,000 in DPA at 0-1% interest.
Minimum Down Payment by Loan Type
| Loan Type | Minimum Down | On a $450,000 Home | Who Qualifies |
|---|---|---|---|
| VA Loan | 0% | $0 | Veterans, active military, eligible spouses |
| USDA Loan | 0% | $0 | Buyers in eligible rural areas (Eagle Mountain, Spanish Fork, etc.) |
| Conventional 97 | 3% | $13,500 | First-time buyers with 620+ credit |
| FHA Loan | 3.5% | $15,750 | Most buyers with 580+ credit |
| Conventional | 5% | $22,500 | Most buyers with 620+ credit |
| Conventional (no PMI) | 20% | $90,000 | Buyers wanting to avoid mortgage insurance |
Utah Down Payment Assistance Programs
Utah has some of the strongest DPA programs in the nation. These programs provide grants or low-interest second mortgages to help cover your down payment and closing costs:
- Utah County: Up to $40,000 at 0% interest, deferred payments — one of the most generous in the state
- Davis County: Up to $50,000 at 1% interest, no monthly payments
- Salt Lake County: Up to $20,000 for first-time buyers
- Utah Housing Corporation: Up to 6% of loan amount as a second mortgage, available statewide
- American Dream Grant: Up to $15,000 for eligible first-time buyers
Can I Buy a House With Zero Down in Utah?
Yes, in three scenarios:
- VA loan: If you're a veteran or active-duty service member, you can buy with zero down payment in any Utah city.
- USDA loan: If you're buying in an eligible area (Eagle Mountain, Saratoga Springs, Spanish Fork, and many other Utah cities qualify), you can get 100% financing.
- DPA covering full down payment: Even on FHA or conventional loans, county DPA programs can cover your entire down payment and closing costs, resulting in zero out-of-pocket.
What About Closing Costs?
In addition to the down payment, budget 2-4% of the purchase price for closing costs in Utah (lender fees, title insurance, escrow, prepaid taxes/insurance). On a $400,000 home, that's $8,000-$16,000. However, many DPA programs cover both down payment AND closing costs, and sellers can contribute up to 3-6% toward your closing costs depending on the loan type.
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